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October, 2012
Customer ExcellenceStephan Linnenbank
CGI property, private and confidential 2
AGENDA
1. The reason voor Customer Excellence
2. Examples and trends
3. The vision of Customer Excellence
4. CX in Business Domains Model
• Sales & Marketing
• Operations
• Corporate staff & Supporting functions
5. Appendix: deepening CX
CGI property, private and confidential 3
Several trends lead to CX ...
CX Trends
Customer trends» Individualization» Polarization between groups and individuals and unpredictable customer behavior» Customer decide how, what, where and when interaction is taking place» Strong need for transparency: process and costs
Organizational trends» Shift from product-oriented organizational structure (silo structures) to customer-oriented» Much more focus on customer handling and binding / loyalty» Centralizing of fragmented business units» Cost standards by government and interest groups
Market trends» Globalization and growth of international businesses» Internet-based green-field companies» Mass Customization: production on a large scale with personalized results» Security is more important then privacy
CGI property, private and confidential 4
Other industries have successfully responded to this
trend, Dell and Volvo are one example ...
CX Examples
Customer decides» Customer determines the exact product configuration
and communication» Process of purchase to delivery is understandable,
transparent and clear» Customer will determine the purchasing channel (Multi
Channel)» Mass Customization is characteristic
Modular based products» Product structure based on standard components» Standardized services
Process» Exact delivery of what is promised (fast and accurate)» Most efficient process possible (assembly line principle)
CGI property, private and confidential 5
The vision of Customer Excellence builds on two principles:
Customer Intimacy and Operational Excellence…
OperationalExcellence
Customer Intimacy
Excellence
the production has the most efficient process with minimal downtime (such as Straight Through Processing)
the products are built from modular reusable standard components(masscustomization)
short turnaround time of products / services
with standard components (white labeling), it is possible to produce multiple variants of the same product (multi-label)
through different channels (multi channel) marketing of products
Short time to market of productdevelopment
Customer
the customer (need) is central
the organization aims at maximum customer satisfaction and customer loyalty
the customer can compose a product in line with the desired wish
a fast and reliable delivery of good service is key
the customer decides through which communication channel, at which time and from which location the interaction takes place
the organization has an integrated customer view and customer approach
the organization recognizes and anticipates on events in the lifecycle of a customer
the organization seeks to maximize added value for the customer
Customer Excellence is the optimal combination of those principles:
CGI property, private and confidential 6
Customer Excellence translated to the organization…
Sales and marketing
The organization is fully customer-oriented and focused on providing maximum value for the customer. The integrated approach to customer focuses on the needs of the customer rather than a product push, where customer loyalty is leading. The products are modular, so the customer can configure the product. The communication and distribution is through various channels (multi-channeling), which can be specifically used for a target group or chosen by the customer. Through the generic customer view all customer-related information is available for all sales channels real time and contains all the product information of the customer. The purchase process for the customer is completely understandable and transparent. Each contact gives the customer the most appropriate product offered. The delivery of services and products directly as possible and the customer gets exactly what is promised.
Operations
The factory aims at maximum efficiency and therefore easy and inexpensive to manage and maintain. This requires standard products by a standardized production process from the factory as 'white label‘ and be delivered in the market through multi-labeling. The products are composed of standard reusable components and by their modular construction easy to combine and configure. There are generic processes, which for all product (groups) are identical. This product and process structure makes mass customization possible. Efficiency is supported by standardization of the same (business) functions and use the best standard IT applications for specific (business) functions.
Corporate Staff and Supporting Functions
All secondary processes and support activities are centralized and standardized, and as services provided to the organization. Law and regulations shall ensure that the organization is compliant. The IT function is generic and standardized deployed. There will be worked from a single point of truth, where all the customer questions will be answered. All financial matters are managed and handled by the Finance function. The long-term innovation and product development is conducted by the research and development center.
CGI property, private and confidential 7
Customer Excellence is described by a business
domains model (BDM) ...
Business domains model: simplified representation of the various fields within and outside an
organization
Internet
Telefoon
Persoonlijk
Kanaal n
Invloed vanuit overheid
Management & Organisatie
Sales & Marketing
OperationsCommunicatie kanalen
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Leveranciers
A
D
n
B
C
Invloed vanuit economie Invloed vanuit maatschappij
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
ProcesProces
Corporate Staff & Ondersteunende Functies
Service
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
DevelopmentDomain of
Channels &
Customer
Excellence
CGI property, private and confidential 8
Sales & Marketing
The sales department within Customer Excellence organization works with products /
services catalog and various operating concepts. The service level may vary by customer,
product and label are different. Customers can customize their products through working
with product configuration of standard product components. This gives the customer a
(perceived) product tailored for their own specific situation. Service is responsible for
aftercare for clients.
The assembly of new product components, new services and the marketing takes place
with customers. Based on specific customer events the client will receive commercial
expressions that exactly correspond to the personal situation. The CRM system contains
all customer information and provides a clear picture of customers labels and all channels.
Customers are immediately recognized in sales activities and the most current information
is available. The various distribution channels are managed by management.
The customer can see by itself their real-time customer information, carry mutations and
product composition on the basis of the defined components. The distribution partners and
customers are served through different channels. The choice of which products and
services offered through the channel, based on cost and value per customer group. The
distribution processes seamlessly into the distribution channels and are decorated
according to the control concepts. The various external parties (eg BKR or RDW) that
facilitate the product suppliers are managed by suppliersmanagement.
The domain Sales & Marketing has within CX a focus
on the customer…
Sales & Marketing
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Service
Internet
Telefoon
Persoonlijk
Kanaal n
Invloed vanuit overheid
Management & Organisatie
Sales & Marketing
OperationsCommunicatie kanalen
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Leveranciers
A
D
n
B
C
Invloed vanuit economie Invloed vanuit maatschappij
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
ProcesProces
Corporate Staff & Ondersteunende Functies
Service
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
CGI property, private and confidential 9
Suppliers Management
» Multi Service Integration
Distribution Management
» Multi channeling
Sales
» Control Concepts
» Customization
» Co-creation
Product Configuration (label)
» Multi labeling
» Component based
» Product engine
Marketing
» Event driven marketing
» One Customer view for the organization
Service
» Feedback management
Sales & Marketing exists of several specific parts…
1
2
3
4
5
Sales & Marketing
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Service
1
2
3
4
5
6
6
Internet
Telefoon
Persoonlijk
Kanaal n
Invloed vanuit overheid
Management & Organisatie
Sales & Marketing
OperationsCommunicatie kanalen
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Leveranciers
A
D
n
B
C
Invloed vanuit economie Invloed vanuit maatschappij
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
ProcesProces
Corporate Staff & Ondersteunende Functies
Service
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
CGI property, private and confidential 10
Operations
In the factory of a Customer Excellence organization is worked with standardized and modular product components. All product components of the complete product portfolio are reusable in the development or adaptation of products and services. These components make the installation of efficient standard processes for all products. The process / chain director manages the main processes to external events (eg change of laws and regulations) timely and consistently implemented. By using standard applications, the best process and IT-supported solutions. The underlying infrastructure is fully scalable to production fluctuations and growth to cope. In addition, the information and data products and services will be centrally stored and managed, so that the information is consistent and reuse possible.
The domain Operations has within CX a focus on
standardization and efficient (production) processes…
Operations
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
Proces
Internet
Telefoon
Persoonlijk
Kanaal n
Invloed vanuit overheid
Management & Organisatie
Sales & Marketing
OperationsCommunicatie kanalen
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Leveranciers
A
D
n
B
C
Invloed vanuit economie Invloed vanuit maatschappij
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
ProcesProces
Corporate Staff & Ondersteunende Functies
Service
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
CGI property, private and confidential 11
Product
» Product portfolio management
» Centralized productdefinitions
Processes
» Maximal Straight Through Processing (STP)
» Customer focused chains/ processdirector
» Standardized
» 100 % digitalized
» Target Operating Model (TOM)
Information & Data
» Centralized
» 100% digitalized information
Applications
» Standard solutions / “best of breed”
» Services Oriented Architecture (SOA)
Infrastructuur
» Fully scalable and integrated
Operations exists of several specific parts…
1
2 4
5
3
Operations
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
Proces
2
1
3
4
5
Internet
Telefoon
Persoonlijk
Kanaal n
Invloed vanuit overheid
Management & Organisatie
Sales & Marketing
OperationsCommunicatie kanalen
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Leveranciers
A
D
n
B
C
Invloed vanuit economie Invloed vanuit maatschappij
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
ProcesProces
Corporate Staff & Ondersteunende Functies
Service
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
CGI property, private and confidential 12
Corporate Staff and Supporting Functions
In the organization are the functions of corporate staff and support functions facilitating to the organization.
Human Resources is the central part where the HR-year cycle (planning-coaching-rate), in-door outflow is regulated with a strongfocus on process and function (re) design (with clear responsibilities and arrangements between HR and line). Internal codes andcompliance are key components within the Law and regulations. Security plays a very important role in CX. Information only for those, which are authorized. In addition, the data are accurate and comply with privacy legislation. Information technology is generic and standardized deployed. Services are called by services (Service Oriented Architecture), which makes that a service call can reached from different processes.
For knowledge, the knowledge-related processes company-wide and to be implemented fully. Knowledge is managed, monitored and implemented by a central body. Together with content managers, this ensure that all channels current, reliable, focused on targeting information. There is a single point of truth for all channels, which should support the primary process and is generic for all customers.
The Finance function is responsible for all financial transactions, financial reporting and handling of debtors and creditors for the entire organization. They have a centralized balance, general ledger and profit and loss account to be managed within this function.
R & D is responsible for innovation and product development at (middle) long term. They facilitate the design of product configurations and defining product features
The domain Staff and Support has within CX a focus on
efficient implementation of supporting processes…
Internet
Telefoon
Persoonlijk
Kanaal n
Invloed vanuit overheid
Management & Organisatie
Sales & Marketing
OperationsCommunicatie kanalen
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Leveranciers
A
D
n
B
C
Invloed vanuit economie Invloed vanuit maatschappij
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
ProcesProces
Corporate Staff & Ondersteunende Functies
Service
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
Corporate Staff & Ondersteunende Functies
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
CGI property, private and confidential 13
Human Resources
» New function structure(assess and reward)
» Product generalistic functions
» Product specialized functions
» Customer focussed culture
InformationTechnology
» Service Oriented Architecture (SOA)
Finance
» Activity Based Costing
» One financial shared service center
Law- & Regulations
» Compliance to relevant law and internal codes
» One legal department
Knowlegde Management
» Centralized knowledge centre for product and process
» Centralized knowledge centre for customer contact
Research & Development
1
2
3
4
5
Staff and Support exists of specific parts…
Internet
Telefoon
Persoonlijk
Kanaal n
Invloed vanuit overheid
Management & Organisatie
Sales & Marketing
OperationsCommunicatie kanalen
LeveranciersManagement
Product Configuratie
(Label)
Marketing
DistributieManagement
Verkoop
Leveranciers
A
D
n
B
C
Invloed vanuit economie Invloed vanuit maatschappij
IT Architectuur
Informatie & Data
Applicaties
Infrastructuur
Fabriek 1
Product
ProcesProces
Corporate Staff & Ondersteunende Functies
Service
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
Corporate Staff & Ondersteunende Functies
InformatieTechnologie
Human Resources
FinanciënWet- &
RegelgevingKennis
ManagementResearch &
Development
1 2 3 4 5 6
6
CGI property, private and confidential
THANK YOU.
For more information
Stephan Linnenbank RM
Email: [email protected]
Phone: +31 6 1085 7453